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From Bulgaria
26.06.2014 10:28
© publics.bg
Bulgaria’s State Energy and Water Regulatory Commission (SEWRC) sent two complaints to the European Commission (EC) over PPAs considered unlawful state aid to two coal-fired power stations and renewable energy producers.
The first complaint concerns long-term power purchase agreements (PPAs) between the state-owned National Electricity Company (NEC) and the thermal power plants ContourGlobal Maritsa East 1 and AES 3C Maritsa East 1. According to the energy watchdog the contracts signed in 2001 between NEC and the two so-called American power stations obliging the state company to buy all energy produced by Maritsa East 1 and 3 contradicts the rules of the Third energy package calling for the removal of all obstacles to competition on the energy markets.
The Commission stated that the PPAs fall within the definition of state aid and that the fixed higher prices for the electricity produced by the two power plants had an ongoing negative effect on regulated market prices, while hindering competition on the liberalised market.
SEWRC also alarmed the EC about unlawful and “oversized” state aid for renewable energy producers in Bulgaria. According to the commission the current installed RES capacity in the country surpasses greatly the targets set in the 2020 plan of the EC, while the development of renewables has been accomplished with excessive state aid which is “harmful to the business, the consumers and the country’s energy system as a whole”.
The energy watchdog argues that feed-in tariffs annually set until July 17, 2012, according to the Renewable Energy Act failed to take into consideration the rapid downward rate of investments needed for the construction of the energy units and the production of renewable energy, thus leading to a tremendous and ill-controlled peak in installed new renewable capacity, especially in the PV segment.
SEWRC has already proposed an annual quota for renewable energy bought at preferential prices. The excess renewable energy is to be sold at the current electricity excess prices at the liberalized market (about EUR 15/MWh). Balancing energy prices for excess and insufficiently are currently administratively set and invariable. The Commission also stipulates that RES producers should be given an option to sell all their energy at the liberalized market at will.
The energy watchdog said it expects the EC to allow the cancellation of the current Bulgarian feed-in tariff scheme.
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